SIU recovers R3.3 million in Fort Hare student accommodation overcharging probe

The Special Investigating Unit (SIU) has recovered more than R3.3 million after uncovering overcharging linked to student accommodation leased by the University of Fort Hare (UFH).

The recovery forms part of a wider investigation into the university’s procurement and contracting processes, with the SIU finding that some accommodation providers were paid more than the amounts stipulated in their lease agreements.

The investigation has now resulted in payments and acknowledgments of debt from three service providers.

Three providers linked to overcharging

According to the SIU, Younus Atcha, trading as Equicent Eastern Cape Developments (Pty) Ltd, acknowledged an amount of R302,814.50.

Tshongwane Trust, meanwhile, signed an acknowledgment of debt after being found to have overcharged the university by R2,928,163.84.

A third provider, Lynton and Harmony, did not sign an acknowledgment of debt after declining to accept the SIU’s letter of demand. The company instead requested the SIU’s banking details and subsequently paid R103,829.96 directly into the unit’s account.

Equicent Eastern Cape Developments and Lynton and Harmony have already settled their respective amounts in full.

Tshongwane Trust has repaid R1.62 million, although the SIU said the outstanding balance currently stands at R1,665,290.41, including interest.

How the accommodation payments were flagged

The investigation found discrepancies after the SIU examined financial records and lease agreements relating to student accommodation at UFH.

The unit said its analysis showed that certain service providers had received payments exceeding the amounts agreed to in their contracts.

The providers were subsequently approached, with the SIU sharing its findings and issuing letters of demand as it sought to recover the money.

For a university serving students in the Eastern Cape, accommodation is a critical part of ensuring learners can access higher education. That makes proper oversight of accommodation contracts particularly important, especially where public money is involved.

Nine disciplinary cases referred

The financial recovery is only one part of the wider UFH investigation.

The SIU has also referred nine disciplinary cases involving former and current university officials allegedly linked to the leasing of student accommodation.

The investigation into certain affairs at the university dates back to 2013 and is being conducted under Proclamation R84 of 2022, as amended by Proclamation R194 of 2024.

The SIU’s broader work at UFH extends beyond accommodation. It is also examining procurement and contracting for goods and services, alleged maladministration within the Faculty of Management and Commerce, and serious misconduct within the Faculty of Law.

The latter includes concerns around the improper registration and admission of students who were allegedly ineligible.

Protecting the public purse

For the SIU, recovering money that should not have been paid is central to its mandate.

The unit said the latest recoveries demonstrate its commitment to protecting public funds and holding those responsible for financial wrongdoing accountable.

The SIU is empowered to institute civil proceedings in the High Court or a Tribunal to address wrongdoing uncovered during its investigations and recover financial losses suffered by the state, including money paid for services that were not properly rendered.

The Fort Hare investigation therefore continues beyond the R3.3 million already recovered, with outstanding amounts, disciplinary matters and wider governance concerns still forming part of the process.

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